The Indian rupee closed weaker on Monday as crude prices surged, nearing a two-month high.
The local currency closed 5 paise weaker at Rs 83.44 and opened flat at Rs 83.4 against the greenback, according to Bloomberg. It had closed at Rs 83.39 on Friday.
"Crude prices rose above $85.41 per barrel, near to a two-month high, due to forecasts regarding summer fuel demand resulting in a supply deficit and that OPEC+ will cut output further in the third quarter," an analyst from Mecklai Financial Services Pvt., said.
The dollar index is at 105.63. Brent crude is at $85.20 per barrel as traders are on the lookout for the Fed to cut interest rates.
Anil Kumar Bhansali, the Head of Treasury and Executive Director of Finrex Treasury Advisors, recommends that exporters wait and watch, while importers are advised to buy dollars at dips with a stop loss at Rs 83.60.
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